Eni Completed the Sale of 10% Stake in the Shorouk Block, Offshore Egypt to BP

Egypt: Eni completed the sale of 10% stake in the Shorouk offshore gas block of Egypt to BP. In November 2016, Eni and BP agreed on the sale of the block stake, where the super-giant Zohr gas field and Shorouk block is located. Now, Eni holds a 90% stake in the license through its subsidiary IEOC. Moreover, the development of Zohr is in quick progression and the production is expected to begin this year. The field contains a total reserve of 850 billion cubic meters of gas and this is the largest natural gas field ever discovered in the Mediterranean. The project confirms Eni’s sector leading ability in exploration and fast development of the discoveries.

TechSci Research depicts that the increase in buying of stake will lead to increase in the demand for LNG due to rising demand from power and industrial sectors in the country. Thus, from being an exporter of LNG, Egypt currently imports LNG to address domestic demand. Moreover, several companies operating in Egypt LNG market are increasing focus on using Floating Storage and Regasification Units (FSRU) for faster commissioning of LNG and to also reduce cost of importing LNG. Furthermore, in order to reduce natural gas demand-supply gap in the country, imports and domestic production of LNG in Egypt is forecast to rise through 2025.

According to released report by TechSci Research, of “Egypt LNG Market Demand & Supply Analysis, By Region, By Application, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, LNG market in Egypt projected to surpass 4.5 MMT by 2025. In 2015, Egypt recorded highest imports of LNG in Middle East & Africa. The country majorly imports LNG from Qatar, Algeria, Australia and Equatorial Guinea. Moreover, increasing demand for LNG from various end use sectors and decreasing LNG prices in comparison to other alternative fuels are anticipated to drive LNG market in Egypt during 2016-2025.